drawee


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Drawee

A person or bank that is ordered by its depositor, a drawer, to withdraw money from an account to pay a designated sum to a person according to the terms of a check or a draft.

Cross-references

Commercial Paper.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

drawee

n. the party who is to be paid on a bill of exchange or check. (See: bill of exchange)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

drawee

a person on whom a BILL OF EXCHANGE is drawn. See DRAW.
Collins Dictionary of Law © W.J. Stewart, 2006

DRAWEE. A person to whom a bill of exchange is addressed, and who is requested to pay the amount of money therein mentioned.
     2. The drawee may be only one person, or there may be several persons. The drawee may be a third person, or a man may draw a bill on himself. 18 Ves. jr. 69; Carth. 509; 1 Show. 163; 3 Burr. 1077.
     3. The drawee should accept or refuse to accept the bill at furthest within twenty-four hours after presentment. 2 Smith's R. 243; 1 Ld. Raym. 281 Com. Dig. Merchant, F 6; Marius, 15; but it is said the holder is entitled. to a definite answer if the mail go out in the meantime. Marius' 62. In case the bill has been left with the drawee for his acceptance, he will be considered as having accepted it, if he keep the bill a great length of time, or do any other act which gives credit to the bill, and induces the holder not to protest it; or is intended as a surprise upon him, and to induce him to consider the bill as accepted. Chit. on Bills, 227. When he accepts it, it is his duty to pay it at maturity.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
As we explained earlier, for traditional checks, a drawee bank is liable for fraud claims that involve the drawer's signature on the face of a check and a depository bank is liable for fraud claims that involve the payee's endorsement on the back of the check.
393, 396-400 (1992) (holding that a transfer does not occur under the Bankruptcy Code until the drawee bank honors a check, where a "transfer" is defined as the "parting with property or with an interest in property" (quoting 11 U.S.C.
"Where a drawee provides funds to a collecting bank on presentation of an instrument bearing a forged signature of the drawer, the drawee will usually--unless a specific factual context dictates otherwise--be in a position to assert that it did not intend the payee to keep the funds....
Matsis seemed to confirm this view, saying that although an increasing number of cheques are being returned unpaid by banks, a drawee will still present them once or twice more before finally considering reporting the drawer to the CIR.
A check is a special kind of draft that is payable only by a bank as drawee and which is payable upon demand by the payee.
id (expanding on the suggestion that the best practice is to make clear that there is always "a chance that any check will be dishonored" by a drawee bank).
(10) A draft is a bill of exchange where the issuer (drawer) requires another (the drawee) to repay the sum on the bill by the due date.
(26) Check 21 allows this new substitute check to act as the legal equivalent of an original check so long as the substitute check accurately reflects all of the information on both sides of the check and bears the legend: "This is a legal copy of your check." (27) A substitute check may be created by the drawee bank once the drawee bank receives the electronic image of the original check from a depository bank.
If the bank honors the check, it has "cleared." If, however, that drawee bank fails and cannot honor the check, the customer who deposited the check will not receive credit from the bank in which the deposit was made and will not be able to withdraw an equivalent amount in cash.
Drawings under the F/X swap arrangements can be initiated by either the FRBNY or the partner foreign central bank and must be agreed to by the drawee. The F/X swaps are structured so that the party initiating the transaction (the drawer) bears the exchange rate risk upon maturity.
For example, if the drawee bank pays a check bearing a forged signature of the drawer, the drawee bank bears the loss (White and Summers 2000, 553555).